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CompetitiveAnalysis_Law_Firms

Equity Partner Compensation 

The essential elements of any compensation plan include certainty, transparency, simplicity, and alignment with strategic goals. Compensation plans built using objective criteria and economic measurements can promote the right behaviors and improve morale when consistently applied.

We will recommend improvements to the existing compensation plan or suggest a new pay plan for the firm that also includes analysis tools, reporting, policies, and guidelines.

INITIAL DISCOVERY & INFORMATION REVIEW

Request for information

Timekeeper productivity reports

Billable hours, value, realized rates, billings, collections, and rates (Past 2 years and current YTD)

Workload distribution reports

Hours worked, billed and collected by client/matter (Past 2 years and current YTD)

Origination statistics

Hours worked, billings and collections by client and by originator (Past 2 years and current YTD)

Hire dates and promotion histories/ Terminations (timekeepers)

For all timekeepers (if available)

Firm income statements and balance sheets

Please also include any supplemental Information included in your financial reporting process (Past 2 years and current YTD)

Individual budgets or expectations

Any expectations the firm has for individuals.

Payroll histories and job titles for all employees

Salaries, wages with raise and bonus histories, title and job assignments (paralegal, secretary to....)(Actual Payroll Registers will be helpful as well) (Past 2 years and current YTD)

Operating agreement

With latest amendments

K1's and W2's

  • Any firm paid benefits

Income allocation worksheets

COMPENSATION SYSTEM ANALYSIS

Prepare objective compensation models

Profitability-based model

Fee share models

Related analysis

  • Client Profitability
  • Equity Adjustments
  • Income Allocations

Alternative compensation plans (if applicable

  • Fee Sharing
  • Profit Sharing
  • Hourly
  • Task-based
  • Subjective and lockstep systems

Recommended system improvements

STRATEGIC ALIGNMENT AND POLICY ANALYSIS

Current compensation policies

Recommended policy changes

Compensation philosophy

Strategic alignment

ADVANCEMENT CRITERIA

Progression Levels

Service Requirements

Qualitative & Quantitative Factors

Equity Membership Admission & Progression

Lateral Hiring Considerations

GUIDELINES

Origination Sharing

Leave & Illness

Dispute resolution process

COLLABORATION TRAINING

System mechanics and incentives

Benefits of collaboration